Sazgar Engineering Works Limited Resumes Production of Haval and BAIC SUVs Despite Auto Sector Challenges

Sazgar Engineering Works Limited (SEWL), the assembler of Haval and BAIC vehicles in Pakistan, has resumed its operations as of today after suspending production last month due to insufficient inventory.

The company announced the news in a notification to the Pakistan Stock Exchange (PSX). However, with ongoing issues such as a dearth of essential items and insufficient foreign exchange reserves, analysts predict that the auto sector will remain sluggish for the next several months.

According to Ismail Iqbal Securities (IIS), the supply side will remain under serious pressure due to the depleting foreign exchange reserves and the government’s will to bring the Current Account Deficit (CAD) under control. This situation casts doubt on any significant development in Pakistan’s auto sector in the near future.